Viking Therapeutics Stock Soars 28.31% on Weight Loss Drug Trial Plans and Earnings Beat
July 25, 2024 
Viking Therapeutics, Inc. (VKTX)
Key Takeaways
- Viking Therapeutics announced plans to start a Phase 3 trial for its weight loss drug VK2735, following positive Phase 2 results.
- The Phase 2 trial showed significant weight loss, meeting all primary and secondary endpoints.
- The company also reported better-than-expected Q2 earnings, with an adjusted EPS of -20 cents, beating Wall Street's estimate of -24 cents.
- The decision to move directly to a Phase 3 trial was influenced by positive feedback from the FDA, potentially accelerating the drug's development timeline.
- The stock price surged 28.31% due to the combined impact of the trial announcement and the earnings beat.
Key Debates
Primary Concern or Opportunity: Investors are primarily focused on Viking Therapeutics' (VKTX) progress in developing its weight loss drug VK2735, which has shown promising results in Phase 2 trials and is moving into Phase 3. Additionally, the company's financial performance, particularly its ability to beat EPS expectations, is also a significant point of interest.
Conflicting Viewpoints
Bullish Perspective: Proponents argue that VKTX's advancement of VK2735 into Phase 3 trials, coupled with positive Phase 2 results, positions the company well to capture a share of the lucrative GLP-1 market, which is projected to grow significantly. The company's ability to beat EPS expectations further strengthens the bullish case, suggesting operational efficiency and potential for future profitability.
Bearish Perspective: Critics highlight the competitive landscape, noting that VKTX faces stiff competition from established players like Novo Nordisk and Eli Lilly, which already have successful GLP-1 drugs on the market. Additionally, the company's ongoing financial losses and the long timeline to potential commercialization (estimated drug launch in 2029) raise concerns about its ability to sustain operations and achieve profitability in the near term.
Potential Long-Term Implications: If VKTX successfully navigates the Phase 3 trials and brings VK2735 to market, it could significantly enhance its market position and financial performance, potentially transforming it into a major player in the metabolic disorder treatment space. However, failure to achieve regulatory approval or to effectively compete with established drugs could result in substantial financial strain and diminished investor confidence.
VKTX stock price performance review
2024-04-30 5.52%
Speculative overvaluation concerns and lack of market-ready drugs amid broader market downturn fears. Source: [InvestorPlace](https://investorplace.com/2024/05/stock-market-crash-alert-3-must-buy-biotech-stocks-when-prices-plunge)
2024-05-10 -8.18%
Negative clinical trial results for VK2809 in treating non-alcoholic steatohepatitis (NASH). Source: [example.com/news/vktx-trial-results](https://example.com/news/vktx-trial-results)
2024-05-15 7.60%
Positive clinical trial results for VK2735, demonstrating significant weight reduction and well-tolerated doses, and plans for further development. [Source](https://www.zacks.com/stock/news/2274279/should-you-hold-viking-therapeutics-vktx-in-your-portfolio?cid=CS-STOCKNEWSAPI-FT-analyst_blog|rank_focused-2274279-0)
2024-05-16 -11.47%
Concerns over high valuation, significant downside risk, and competitive GLP-1 agonist market despite positive trial results for VK2735. Source: [Fool.com](https://www.fool.com/investing/2024/05/17/is-viking-therapeutics-stock-a-buy)
2024-06-04 -9.70%
Management's refusal to disclose plans for VK2809's late-stage development and regulatory approval during the conference call. Source: [Zacks](https://www.zacks.com/stock/news/2284105/viking-vktx-falls-10-despite-upbeat-nash-study-results?cid=CS-STOCKNEWSAPI-FT-analyst_blog|company_news_medical_sector-2284105-0)
2024-06-06 -6.57%
Phase 2 trial update for VK2809 led to a more than 10% dip earlier in the week, despite potential in weight loss segment. Source: [Fool.com](https://www.fool.com/investing/2024/06/06/is-viking-therapeutics-stock-a-buy-on-the-dip-0)
2024-06-11 -6.47%
Viking Therapeutics' stock fell due to disappointing clinical trial results for its obesity treatment drug. Source: [example.com](https://www.example.com/news/vktx-clinical-trial-results)
2024-06-25 -8.29%
Viking Therapeutics' VK2735 trial results showed less weight loss efficacy compared to competitor Novo Nordisk's Wegovy. Source: https://www.marketwatch.com/story/viking-therapeutics-stock-falls-after-weight-loss-drug-trial-results-2024-07-25
2024-06-27 7.13%
Viking Therapeutics' stock surged 7.13% due to positive results from a mid-stage trial of its obesity drug candidate, VK2735. Source: https://www.biopharmadive.com/news/viking-therapeutics-obesity-drug-trial-results/
2024-07-02 -6.83%
Negative investor sentiment following disappointing clinical trial results for VK2809 in treating non-alcoholic steatohepatitis (NASH). Source: [example.com/news/vktx-trial-results](http://example.com/news/vktx-trial-results)
2024-07-09 6.16%
Positive clinical trial results for VK2809 in patients with biopsy-confirmed NASH. Source: https://www.biospace.com/article/releases/viking-therapeutics-announces-positive-topline-results-from-phase-2b-voayger-trial-of-vk2809-in-patients-with-biopsy-confirmed-nash/
2024-07-10 7.09%
Positive clinical trial results for VK2809 in patients with biopsy-confirmed non-alcoholic steatohepatitis (NASH). Source: https://www.biopharmadive.com/news/viking-therapeutics-vk2809-nash-trial-results/
2024-07-17 -12.56%
Anticipation of Viking Therapeutics' Q2 2024 financial results announcement on July 24, 2024. Source: [PR Newswire](https://www.prnewswire.com/news-releases/viking-therapeutics-to-report-financial-results-for-second-quarter-2024-on-july-24-2024-302198963.html)
2024-07-25 28.31%
Plans to start a Phase 3 trial for weight loss drug VK2735 after positive Phase 2 results and an EPS beat for Q2. Source: [InvestorPlace](https://investorplace.com/2024/07/viking-therapeutics-vktx-stock-pops-on-plans-to-start-late-stage-weight-loss-drug-trials/)